Sharplink to stake $200M in Ethereum via Lido

Sharplink, a blockchain-based gaming company, plans to allocate $200 million worth of Ethereum (ETH) to staking through Lido Finance’s protocol, the firm announced on Wednesday.

The move will see the ETH deposited into Lido’s liquid staking solution, which enables users to earn staking rewards while maintaining liquidity via stETH tokens. Lido, a dominant player in the Ethereum staking ecosystem, currently holds over 9.5 million ETH in staked assets, according to public blockchain data.

Sharplink’s decision reflects broader institutional adoption of Ethereum staking, driven by the network’s transition to a proof-of-stake consensus mechanism in 2022. Staking rewards for ETH currently range between 3% and 4% annually, depending on network conditions and validator performance.

The company did not disclose whether the staked ETH would be sourced from its treasury reserves or external funding. A spokesperson for Sharplink declined to comment on the timing of the staking deployment or the specific allocation structure.

Lido’s protocol has faced scrutiny from Ethereum developers and regulators over concerns related to centralization risks and potential securities law implications. Despite these challenges, it remains the largest liquid staking provider in the ecosystem, with a market share exceeding 30% of all staked ETH.

Sharplink’s move aligns with a trend of crypto-native firms leveraging staking to generate passive income while supporting the Ethereum network’s security and decentralization goals.